This is the Resolution which increases the duty on bodies of motor vehicles. As I said originally, the imposition of this duty has brought results in a shorter period of time, and to a much greater extent than even I hoped when it was decided on. Every motor manufacturer whose cars sell in any quantity in this country has made, or is making, arrangements to have the bodies assembled here, with one or two exceptions, and I have no doubt that these one or two firms which have not yet made arrangements will proceed to do so in the near future. In the case of some of the firms, arrangements are in contemplation to include not merely the assembling of the bodies but the chassis, and it is anticipated that very considerably increased employment will be given in centres in which the existing works are or in which new works will be established, and that as a result of the assembling of the bodies here, and the decision of the Executive Council to remit entirely the duty chargeable on the parts of bodies, motor cars will be cheaper when these Irish bodies are available than they are at present or have been in the past.
The Order was imposed for similar reasons as the Order in respect of horse-drawn vehicles. In consequence of events, considerable importations of cars were anticipated and the figures which were available showed that, in fact, some increase had taken place. The Executive Council was satisfied on my report, that the Order should be made, and the Order was made. The Dáil is now asked to approve of it with the modifications set out in the Resolution. These modifications relate to the following Resolution on the paper, and it would be, I think, much more convenient for the Dáil, if both were discussed together. Number 4 on the paper is the Resolution designed to remit in part the duty chargeable on the chassis of a private car when imported as part of a completed car before 7th August next. The decision to make that remission was arrived at when I was satisfied that all those concerned in the importation of motor cars here were going to co-operate fully with the Government in having a body building industry established. I am not sure to what extent the remission is necessary. In the case of some makes of cars, there is reason to hope that the Irish built bodies will be available before the date mentioned in this Resolution. However, we have decided upon it, and I have received from the firms engaged in the importation of motor cars a specific guarantee that they will not, during the period of the remission, import a larger number of cars than were imported by them in the same months last year. The second part of the Resolution relates to the remission of duties heretofore chargeable on parts of bodies. These parts were always subject, since the establishment of the Free State, to a duty of thirty-three and one-third per cent., with a two-thirds preferential rate. We are remitting that duty entirely, so that unassembled parts required in the construction of the body will come in here, free of duty, and it is in consequence of the fact that the assembly of the body should not cost any more in this country than in any other country, that we expect a reduction in the price of motor cars to take place.
The main opposition to the application by the coach-builders was based on the impossibility of manufacturing in this country the steel stampings out of which these motor car bodies are built. In certain types of cars, for which there is a very large sale, the bodies are now constructed entirely of steel, and huge stamping plants are required to manufacture the parts. It is not intended that we should have these parts manufactured here. They will be imported free of duty, and assembled here, and by far the greater part of the labour involved in the making of a motor car body is involved in the assembly, and not in the making of the parts. That labour will be engaged here rather than abroad.
In respect of omnibuses and commercial cars of all descriptions, Deputies who have read the Tariff Commission's report, even though they recommended against the application, are aware that there was no opposition to the application, and that the Irish firms engaged in this industry were competent to supply better bodies for commercial cars and omnibuses than could be imported, at a price not exceeding that at which imported bodies were available, and it was anticipated, and admitted, that following a development of the industry, after the imposition of the tariff, prices here would tend downwards, so that we would be able to get these bodies at prices lower than we got them heretofore. The competency of the industry to supply all our requirements in bodies of commercial cars and omnibuses has never been questioned. Even the Society of Irish Motor Traders did not oppose the application for the duty in respect of this class of bodies.
The third part of the Resolution relates to the change in the law which it was desired to effect, and which would have been made, irrespective of whether the duty was imposed or not. It facilitates a person who comes into this country with the intention of residing here permanently, to import a motor car, previously used by him, free of duty. I move the Resolution approving of the Variation Order, with the modifications suggested, and the Financial Resolution giving this remission in respect of the duty on the chassis. The Financial Resolution is:
(1) That the duty imposed by Section 11 of the Finance Act, 1928 (No. 11 of 1928), as amended by subsequent enactments, shall be charged, levied, and paid on the following articles at the rate of an amount equal to fifteen per cent. of the value of the article in lieu of the rate mentioned in the said Section 11, that is to say—
On every motor car chassis which is imported for sale by a trader in motor cars on or after the 6th day of May, 1932, and before the 7th day of August, 1932, and is so imported as part of a complete motor car which is, in the opinion of the Revenue Commissioners, at importation a new motor car constructed, designed, and intended for the carriage of persons otherwise than for reward.
(2) That the provisions of Section 8 of the Finance Act, 1919, shall apply to the duty mentioned in the foregoing paragraph of this Resolution with the substitution of the expression "Saorstát Eireann" for the expression "Great Britain and Ireland" and as though the articles mentioned in that paragraph were included in the Second Schedule to that Act in the list of goods to which two-thirds of the full rate is made applicable as a preferential rate.
(3) That the duty imposed by Section 11 of the Finance Act, 1928 (No. 11 of 1928), as amended by subsequent enactments shall not be charged or levied on any of the following articles imported into Saorstát Eireann on or after the 6th day of May, 1932, that is to say—
Component parts and accessories of motor car bodies which, in the opinion of the Revenue Commissioners, do not constitute at importation an assembly or partial assembly of such parts or accessories.
(4) That whenever the Revenue Commissioners are satisfied in respect of a motor car which is being imported into Saorstát Eireann on or after the 6th day of May, 1932, and is in their opinion constructed and designed for the carriage of persons, that
(a) the importer of such motor car resides or intends to reside permanently in Saorstát Eireann, and
(b) such motor car had been previously used (otherwise than for the carriage of persons for reward) by the importer or by his family or household, and
(c) such motor car is being imported for the use (otherwise than for the carriage of persons for reward) in Saorstát Eireann by the importer or by his family or household,
the Revenue Commissioners may, subject to compliance with such conditions as they may think fit to impose, permit such motor car to be imported without payment of the duty imposed by Section 11 of the Finance Act, 1928 (No. 11 of 1928), as amended by subsequent enactments, including amendments made under the Customs Duties (Provisional Imposition) Act, 1931 (No. 38 of 1931), in relation to the rates at which such duty is chargeable.
(5) That any duty which has been paid before the passing of this Resolution and is by virtue of this Resolution not chargeable shall be repaid.
(6) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).